Real Estate
9 October, 2025
Southern highs good for FNQ
MELBOURNE’S housing market has just pushed through to record high prices, and while that might feel like a southern issue, the ripple effects are already being felt across regional Queensland.
When prices surge in the capital cities, particularly in Melbourne and Sydney, buyers and investors inevitably start looking elsewhere. For many, Cairns presents the perfect alternative – it offers a lower price point, stronger rental yields, and of course, the lifestyle that comes with living in the tropics.
For investors who are priced out down south, Cairns is quickly becoming one of the most attractive options.
This trend is more than just speculation. We’ve already seen inquiry levels lift from interstate buyers, particularly those chasing long-term growth combined with short-term rental demand from tourism. First-home buyer incentives and greater borrowing capacity are also pushing more buyers into the market, and as southern stock tightens, the search naturally widens northward.
For Cairns, that means pressure is mounting on both ends of the market, affordable homes are attracting intense competition, while lifestyle properties are drawing increased attention from Melbourne and Sydney migrants. That translates to quicker sales, reduced rental vacancy and steady price growth.
- Troy McGuane is a director of Palm House Property
